Commodities

Fed Hikes Rates as Expected, Sets Stage for Another Potential Rate Increase This Year

Guavy AI Editorial Team Published September 17, 2026

Instruments

Gold

The Federal Reserve raised interest rates by 25 basis points as expected, lifting the target range for the federal funds rate to 3.75%-4.00%, with all 12 FOMC voting members unanimously supporting the decision.

This marks the Fed's first rate hike in three years and its first policy adjustment since Kevin Warsh took office as Fed Chair.

The updated dot plot shows that 16 out of 18 officials expect at least one more 25-basis-point rate hike before the end of 2026, with a median forecast for the federal funds rate at year-end rising to 4.1%, corresponding to a target range of 4.00%-4.25%.

Gold prices rebounded quickly after dropping sharply to $4,235.44 on Wednesday, returning above $4,300 during intraday trading today and rising to a high of $4,318.26.

Fed Hikes Rates as Expected, Sets Stage for Another Potential Rate Increase This Year

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